Ambitious targets were laid down which were successively revised upwards. Prof. P.R. Thus growing population means the growing market for goods is enlarged, they can be produced on a large scale and thus economies of large-scale production can be reaped. Therefore, greater focus on human and inclusive development in India is necessary to best utilise the demographic dividend. It is worthwhile to note here that it is only China which has brought population growth rate quite will under control by adopting one child per family norm. Impact of population growth on Development January 11, 2018 Population Growth is the increase in the number of individuals that reside in a country, state or city. The accent in new policy is on integrating contraception with public health, medical care, material and child health and nutrition. When population growth becomes "rapid" there is a great chance that the counter-productive level has been reached. Forty-three percent … Positive effects of population growth: Population growth contributes to the new inventions and growth of a country. At present about 50 Per cent of India’s population is below 20 years of age. Thus, policies that have to be adopted to check population growth should aim to reduce the birth rate, the increase in birth rate is ruled out for obvious reasons. <<3a46da547fab2847a34c29736d36b6ce>]>> They share work in agriculture with other family members no matter how low the productivity per person becomes. It may be noted that during fertility rate in under­developed countries is quite a formidable task. Hence, a large number of our present population will live to see by the middle of the 21st century the disastrous consequences such as acute poverty conditions. In view of this much of our investment efforts are directed at ‘absorbing the growing labour force in productive employment, our ability to raise productivity of labour is severely constrained. In developing areas of the world, population growth can seem to have a positive effect on local economies. Population growth depends on the fertility rate (birth rate) and death rate. Increasing supplies of capital goods become possible only with higher rate of investment and a higher role of investment, of turn, is possible if the rate of savings is high. Population growth can be reduced by reducing the birth rate. Effects of Population Growth on the Economic Development of Developing Countries By RICHARD A. EASTERLIN * ABSTRACT: The existing state of knowledge does not warrant any clear-cut generalization as to the effect of population growth on economic development in today's less developed areas. Under family planning programme various contraceptive devices and health services are provided to encourage the couples to adopt small family norm, that is, to have fewer children. Rapid growth in population in an already over-populated country also raises the problem of food security in the country. ���:C�o���CUY��:�-��O�N�HN���g���q�"~bKj��4D��b����k�/y�m=DV3�g��qfK�����YR�],�-���%IxM��+���f To the Greek philosophers, about 2,500 years ago, population growth was undesirable as it adversely affects economic development. Little wonder, the official over-enthusiasm and excesses made the whole programme highly unpopular and this was one of the main causes of Congress Party’s utter rout in the Northern States in Lok Sabha Elections of March, 1977. He argued that with high fertility rate among the younger persons and declining mortality (death) rate among the old-age people, in the growing population the proportion of non-working age groups which depend on the working or earning members of their families increases. He further adds, “Such an atmosphere cannot be conducive for economic progress. To maintain the integrity of a nation during war, the government necessitates these services among public. India is the first country in the world to adopt family planning as a state policy. The developing countries of Latin America and Africa do not face this population explosion problem. This study aims to analyze the impact of the development and stability of the financial sector on economic growth on the basis of the quantitative methods that produce robust results. Image Guidelines 5. The cause of food problem in India is the rapid growth in population since 1951. Some researchers maintain that population has a negative impact on economic development while others are convinced that the effect is positive. It should be speeded up but strategy of development should be such as will promote employment opportunities for the poor especially landless labour, marginal and small farmers. But, to show how rapid population growth retards economic development, it is necessary to mention that by economic development we mean not only increase in national income (GNP) or per capita income, but also reduction in unemployment as a result of the growth of employment opportunities and reduction in poverty and inequalities of income. We shall now discuss each of them briefly. �4 T,.X In fact, the name of the ministry has been changed from Ministry for Family Planning to Ministry of Family Welfare. Development is a positive change that is desirable in particular time and place. In the United States, where supplies of natural and capital resources are comparatively abundant growth in labour force caused by increasing population raises national output. In India where supplies of other economic resources, especially capital equipment, are relatively search in­crease in population or labour force does not lead to the employment of all due to scarcity of capital resources. Of particular interest is the rate of population growth vis-à-vis economic growth and development. on the basis of preference to those who have a small family. According to this, it should be made compulsory for the couples to undergo Sterilisation beyond a certain number of children, say two or three. 71 15 Impact of India’s Population Growth on Economic Development Economics SHUBHI AGARWAL Research Scholar, Department Of Economics, Ccs University, Meerut KEYWORDS ABSTRACT Population is the resource of labor force. In other developing countries such as Pakistan Bangladesh, rate of population has been greater than that of India. Deforestation: An increase in population tends increase in the demand for land, for shelter food, increased demand for energy which led to deforestation, cutting of forests. In order to overcome the shortage of food-grains and to prevent the occurrence of famines in the country, India was forced to import food-grains and spend a good amount of valuable foreign exchange on them. This also shows how rapid growth in population by causing food shortage inhibits the rate of industrial development. Disguised unemployment means more workers seem to be employed in it but quite a large number of additional workers do not add to agricultural output, that is, marginal productivity of workers in agriculture is zero or nearly zero. For the success of the family planning programme a variety of medically tested and safe contraceptives such IUD. But after some time ‘impress ion was created among the female population that it was not very safe. Some theoretical analyses argue that high population growth creates pressures on limited natural resources, reduces private and public capital formation, and diverts additions to capital resources to maintaining rather than increasing the stock of capital per worker… By Staff Writer Last Updated Apr 14, 2020 5:04:12 AM ET. If current trends continue, India may overtake China in 2045 to become the most populous country in the world. In so far as it goes, the new orientation may prove to be good but it needs to be stressed, as shall be brought out later, that the success of family planning programme depends heavily on the process of social and economic development. 3 INTRODUCTION This paper is about population and development. Since all must consume, in the absence of increase to productivity, saving per person must fall. To provide them productive employment workers need to be equipped with enough capital goods. When population grows faster than GNP, the standard of living of the people does not improve. High population growth rates mean that the average age of a population will be young and there will be high dependency rates. Since independence, Tanzania undertook census enumerations in 1967, 1978, 1988 and, most recently, in 2002. In addition, the country undertook Demographic and Health Surveys in 1991–1992, 1996 and 2004–2005 and the … Secondly, it has been pointed out that the increase in population leads to the increase in demand for goods. Such practices do not take place in countries with high … Introduction. When birth rates decrease, the strain on younger workers can be immense. Content Filtrations 6. A population increase of young, energetic age set is considered quality growth. It may be noted that a great boost was given to the family planning programme by the discovery of IUD (intrauterine device), popularly called as loop. Dr. Ashish Bose, an eminent demographer, has pointed out that India’s family planning campaign has been severely handicapped because of the slow rise in the literacy level. depend on overall economic development in coming decades as well as government efforts to support a fertility decline. extent with the character of social and economic development in India which has failed to remove mass poverty and improve the levels of living of the poor and weaker sections of the society. By increasing a productive resource population growth will help in producing more output. It helps economic development and it retards economic development. In Table 41.1 we present population growth in India. This suggestion of introducing an element of compulsion in the sterilisation programme implies that one is not hopeful of various incentives and discentives succeeding in achieving the objective of stationeries in population size. 0000005694 00000 n This will discourage the employed women to bear more children. 0000003122 00000 n Pakistan needs to control the growth rate by providing awareness to the people through its family planning program.   As its people get richer, they will consume more. To a certain extent lack of capital may be made up by harder work by workers in a country like India. In the long run, ARDL results show that the population growth has a positive and statistically significant impact on economic development. The mere growth of unemployed or paupers cannot lead to greater demand for goods or expansion in their markets. For these land reforms measures and income redistribution policies should also be effectively implemented. The educated men and women accept small family norm and more readily take family planning measures such as use of contraceptives. We thus see that the growth in population has an adverse effect on the marketed surplus of food-grains and these acts as a drag on the growth of output and employment in industries. Luiz Felipe Castro/Moment Open/Getty Images. (2) The establishment of old-age social security provisions, such as old-age pension. $�ř^=O1Ҏ�YA�`��*I��XI����snUq��� 6l�5���s���Uо[��,^m6! If enough surpluses of food-grains are not forthcoming this acts as an important constraint on the industrial development. This, essentially, means that such a population will have a very positive influence on the … There is no wonder then, even after over 50 years of planned economic development, 317 million people lived below the poverty line in 1993-94. The population growth is swallowing up a large part of the gains in national income brought about by planned economic development. In India, after the experience of several years, there has been some reconsideration of the various aspects of the family planning programme. Therefore, the growth rate of per capita income has been relatively higher. In absolute numbers there will be approximately 63.5 million new entrants to the working age group between 2011 and 2016. Thirdly, their desire to further improve their level of living increases and this induces them to practise family planning measures. This gives rise to a huge problem of properly feeding and clothing them. In other developing countries such as Pakistan Bangladesh, rate of population has been growing at about 2 per cent or more. Moreover, when educated women are employed, their tendency to bear and rear more children falls. Economic growth is dependent on a wide array of factors that range from technology to capital. Even employment generation in agriculture apart from high yielding inputs such as fertilisers, HYV seeds, and pesticides as requires irrigation works, an important capital needed for extension of double cropping which is highly employment generating way in agriculture. Of all the measures involving several incentives and disincentives proposed the most controversial is the proposal of compulsory sterilisation. China's growth has reduced poverty. What Are Some Positive Effects of Population Growth? Pakistan has failed to provide basic necessities such as education, employment and health services to its people and the reason behind these problems is the high population growth rate. The relationship between population growth and economic development has been a recurrent theme in economic analysis since at least 1798 when Thomas Malthus famously argued that population growth would depress living standards in the long run. The existing state of knowledge does not warrant any clear-cut generalization as to the effect of population growth on economic development in today's less developed areas. In 1976 while the target of sterilisation originally fixed was 43 lakhs, actually 75 lakhs sterilisations were effected. (4) Allotment of scarce public houses, housing plots, flats etc. But, to show how rapid population growth retards economic development, it is necessary to mention that by economic development we mean not only increase in national income (GNP) or per capita income, but also reduction in unemployment as a result of the growth of employment opportunities and reduction in poverty and inequalities of income. to positive effects such as economies of scale and specialization, the possible spur to favourable motivation caused by increased dependency, and the more favourable attitudes, capacities, and motivations of younger populations compared with older ones. Additional people provide a workforce necessary to generate goods and services. Stressing the importance of controlling population growth in India characterised by w economic growth, the existence of mass poverty and unemployment. Only 3.3% of the population lives below the poverty line. 0 An appeal is made to them that their life would be happy and prosperous they have small family. 0000002801 00000 n As about 65% of the population is engaged in agriculture, the most of the increase in population also takes place there. Population growth is essential for creating a strong base of high-income workers. Admittedly, this is a drastic measure, but is considered very effective in the context of the failure of voluntary family planning programme. imae source: … Where 0 stands for output of food-grains, and C. for consumption of food-grains by the fanners themselves. Moreover, when there is several contraceptives available, recourse to compulsory sterilisation is not needed. Since rate of growth in national income is given by the rate of investment multiplied by the output-capital ratio, la will signify the rate of growth of national income. Agriculture performs the role of residual absorber. When a country grows and accelerates its pace of industrialization, it requires food-grains to feed the workers who are employed in industries. Thus, with the fall in net sown area per person and increased Population pressure, disguised unemployment emerges in agriculture. Therefore, on important measure to reduce the birth rate is the promotion of education, especially among female population of the country. In India during the dark period of emergency the policy of forced sterilisation was in fact adopted, though officially it was described as voluntary. These we organize by major categories of economic activity, indicators of how goods, services and opportunities are distributed; and by categories of assets, material or nonmaterial resources of utility and value. However, in some cities, rapid growth leads to skyrocketing housing prices and unmanageable traffic. As for the argument that population growth leads to increase in demand or market for goods, it may noted that the demand or market for goods increase if the real purchasing power in the hands of the people increases. Prohibited Content 3. As a result of this explosive increase in labour force demographic pressure on the economy has increased resulting in increase in backlog of unemployment and under- unemployment at the beginning of each successive Five Year Plan. Whether or not the growth of population countries to economic growth depends on the existing size of population, the available supplies of natural and capital resources, and the prevailing technology. Thus, given the scarcity of investible resources adequate resource are not left to raise per capita income significantly. It should be ensured that fruits of economic development should reach these poor people. High Population growth rate is a burden on economy of the developing country. Further, as has been explained in detail in the above sections such large increase in population and consequently huge increment in labour force lowers our capacity to make productive investment and thereby to increase productivity of labour to ensure eradication of poverty Prof. K. Sundaram rightly writes, “the size of increments to population is itself of some consequence. Besides these, several other incentives and disincentives have been devised to encourage the small family norm. �,�[�L`1� 1XD����C�n�}���Z-� �����%���4[ ��X Privacy Policy 8. This prevents the living standards of the people to rise rapidly. In the opinion of the present author, the policy of forced sterilisation is quite inhuman; it is treating human beings as animals. ��"� ��������AD���ջ.��3'�fЦ��.���_k������ޭF� �?�,xZc�u�N��/��^@kq� R?p��,�s��Ԛ��Ÿ�E�z��,Yg~ A vicious circle of poverty operates in this regard. Urbanisation and economic growth are inevitably linked, however the impacts from this can be both negative and positive. On the positive side, an increasing population means an increase in the supply of labour— a basic factor of production. Malthus talked about Economic development and he emphasized on the short-term development instead of long-term development. But such a method of adjustment is not easy to achieve in India. 71 0 obj <> endobj Population Growth and Marketed Surplus of Food-grains: Another way in which growth in population is impeding economic development is its effect on marketed surplus of food-grains. This is because in the modern times man can produce little with bare hands. Bloom and Canning (2004) also show that there are positive impacts on economic growth as baby boom cohorts join the labor force and save for retirement. Accordingly, if population is to be effectively checked not only the tempo of economic development. In India, in several years, increase in agricultural output has not been enough and further that the rapid growth in population has tended to reduce the growth of marketable surplus. On the other hand, more recent theories suggest that population growt… Last but not the least the important consequence of rapid population growth is that it has made very difficult to make a significant dent into the problem of mass poverty prevailing in’ the country. It follows from above that labour force consequences of population growth are to a good extent responsible for huge unemployment and underemployment prevailing in India. The following research hypotheses are tested: /H1/ The relationship between financial sector development (stability) and economic growth is nonlinear; /H2/ An excessively large size of the financial system … Now, it will be seen that rate of population growth r appears as a negative factor and will therefore lower the rate of growth of per capita income g. It therefore follows that if rate of growth of per capita income g, and the rate of rise in living standards with a given rate of investment is to be raised, the rate of growth of population should be lowered. Derek and Andrew (2009) through regression analysis conclude that the impact of population growth varies between being negative, positive and … In other words, a high rate of increase in population swallows up a large part of the increase in national income so that per capita income or living standards of the people do not rise much. Public opinion is strongly opposed to it. To the extent the Government has to increase its expenses on duplicating these social welfare facilities, investment resources for productive type of capital such as machines for industries, irrigation and fertilisers for agriculture, crucial basic goods such as steal, coal, electricity generation etc would be reduced. Effects of Rapid Population Growth While population growth is at times a beneficial thing for a species, there are many factors that define when growth becomes detrimental. Per capita income (at 2004-05 prices) grew at the rate of 4.6 per cent in the Eighth Plan period (1992-97), 3.5 per cent in the 9th plan period (1997-2002), 5.9 per cent in the 10th plan period and 6.3 per cent in the 11th plan period. Average annual growth in national income and per capita income in various Five Year Plan Periods in given in Table 41.2. There are several reasons why population growth in developing countries is today a greater economic burden than it once was in today's developed countries: Population growth is now much more rapid. This worsened the balance of payments problem of the country. 0000005276 00000 n It also helps pay for social welfare programs. Two general schools of thought surround the perceived effects of population growth. Therefore, in the absence of employment opportunities outside agriculture, much of the additional labour force is forced to remain in agriculture and allied activities. Rapid population growth nullifies our investment efforts to raise the living standards of our people. India’s population which is presently about 1027 millions is increasing at a rate of about 2 per cent per annum. �Q�a��˕{Lٝo�� ��i���W.סzUOzG_���{z)��;��W�������-����G~��\Q0�����n ?��Q-c?��%�瞕5�wX������(�l!�"IP͏M�I�`���Wnϕ1N5��"J���8�� �4�"�mQ���oB�p����dZ5�&���k/O���Ou 8"�[b;�d����(�˙�����H����AL��l,�9�̕�r4�l�2&� ���|T[���tzRo5�粩��ek�ʻѷ�����$�ɀ���A���67Q3Q�4I)�?|7q�(D.�D@.f�_6�l��TD���&_�e~8+ưzo-�0�,��r���}��aVLYx*O@Z�V���S���z������` ��&!m�~&6I��p�[ٜ�X,�*O�/I"#�q�{���I�9bsډ�.�vBv"�Vt�T�7��M��*;I]�>YYȒѺo8eԧ7u����-С쨕�d��^_?������ ��� ��R����U��e��8�\�\ʸr � Instead of focusing on adding to the population, cities like Huntsville, … %%EOF Thomas Malthus theorized in 1798 that too much population growth too fast would overtax the Earth's resources and eventually lead to disease, starvation and death. This higher per capita income growth rate since 1991 has tended to raise the standard of living of the people higher than before. To quote him “The sad fact remains that in large parts of India, especially in U.P., Bihar, Madhya Pradesh and Rajasthan women literacy rate in the rural areas is less than 10per cent. Like a thief in the night, population growth robs us of most of the gains in national income made from higher investment. 0000002528 00000 n This is clear from the fact that as large as about 18 million people over and above one billion populations estimated on March 1, 20.01 are being added to our population every year as per 2001 census. And these are states where the progress of family planning is slow. 4. 0000000995 00000 n 2. Unemployed people do not add to national output. Some of the incentives and disincentives adopted to promote family planning are: (1) Elimination or reduction of maternity leaves and benefits beyond a certain number. (3) Money payments to those who opt for small families and voluntarily go in for Sterilisation operation. Such a trend would make India one of the youngest nations in the world. This is because, as has been pointed out by Kuznets, “in under-developed countries people have an intense tendency to have more children because under the economic and social conditions large proportions of the population see their economic and social interests in more children as a supply family labour, as a pool for a genetic lottery, and as a matter of economic and social security a non-protecting society.”. Due to lack of investible resources caused partly by population growth, it has not been possible to extend irrigation facilities to the currently known irrigation potential. significant effect (or perhaps even some positive effect) on economic growth (Kuznets 1967). The rapid growth of population has direct impact on the environment and economy. Now, increase in population by adding to the number people whose requirements of “feeding and clothing” have to be met which tends to raise consumption and, therefore, lowers both saving and investment. Thus. It may be noted that people of India has already rejected the policy of compulsory sterilization adopted during emergency period 1975-77. Thus, while the aggregate national income of India went up by 3.6% per annum in the First Plan period and 4.1% per annum in the Second Plan period, per capita income rose by only 1.8 per cent and 2 per cent per annum respectively. The theory was simple: given that there is a fixed quantity of land, population growth will eventually reduce the amount of resources that each individual can consume, ultimately … x�b```f``Z���������x�b �1!v��E����=���3������//��-�Y ���\����rK��2�ۮ�[ |dJk���2��`�J0cKP���9XR����j���� @�\8�4���o�P@A��ˤ��CD��F! This result was in several respects counterintuitive: neo-Mal thusian antinatalist arguments were widespread at the time, chiefly voiced by non-economists (Ehrlich 1971); and Coale and Hoover (1958) had identified several ways in which population growth was likely to constrain economic development. Different Views on the Role of Population Growth: Population growth plays a conflicting role in the development process of a country. Population Growth and Rate of Saving and Investment: Economic growth requires increasing supplies of capital goods. It has been argued by some that population growth leads to increase in labour force which is an essential productive resource. It is important to note here that in the present day’s industrialised development countries,, in spite of Mathus’ view to the contrary population growth was beneficial for economic growth rather than retarding it. The decline in number of poor people to 260 million in 1999-2000 is doubtful’ because of the change methodology made in NSS of 1999-2000. … Population Growth and Economic Development of a Country! As Chapter 4 showed, in industrializing Europe it seldom exceeded 1.5 percent a year, compared with the 2 to 4 percent that most developing coun-tries have averaged since World War II. The effects of population on environment and economy are as given below: Effect of Population on Environment. In agriculture, self-employment is predominant and the joint family system prevails under which both household’s income and work are shared among the family members. At the time that he made his prediction, the world's population was only at 800 million, but now, it's over 7 billion. Recently, policy of providing economic incentives and discentives has been adopted in some countries to discourage the people from having more children beyond a certain number which is generally fixed at two or three. That the population growth prevents the rapid rise in per capita Income and therefore rise in living standards of the people can be expressed by the following growth formula. By causing food shortage inhibits the rate of capital goods, after the experience of years! That people of India ’ s population which is presently about 1027 millions is increasing at a rapid rate comparatively. Employment workers need to be checked if gains of development are not true. That unemployment should decrease workers who are employed, their tendency to bear children! A workforce necessary to best utilise the demographic dividend provides India large productive opportunities for rapid growth! Figures for China and us are 37 and for Japan 48 years growth becomes `` ''! Birth rate ) and death rate is necessary to best utilise the demographic dividend ’ increases! Significant impact on economic development is a burden on economy of the in. 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